The Fund's investment objective is to achieve a level of annual income in excess of 5% net of fees to be distributed to shareholders subject to the availability of suitable investments, and with accompanying capital growth from these investments to target a total return equal to or greater than the Morgan Stanley Capital International Index.
The investment policy of the Fund is to invest in equities, equity related instruments, including warrants, convertible preference shares and debt on a global basis. The primary focus of the Fund will be on publicly quoted equity of companies. The Fund may acquire shares in private placements, and may lend money to private companies in conjunction with acquiring an equity position, but at no time will the Fund commit in excess of 20% of its net tangible assets to non-listed investments. In practice we have never made an unlisted investment. If at any time investments in nonlisted companies exceed 20% of the Fund's portfolio, the Fund will not make any further investments in
non-listed companies until such investments have reduced to less than 20% of the Fund's portfolio. The Fund may purchase government bonds or commercial paper of corporations or quasi state entities such as municipalities. The Fund may purchase both current income and zero coupon bonds. The Fund may also sell short or hedge where appropriate and write bids or calls on equities or market indices as part of efficient portfolio management. The Fund will not speculate in currencies but may hedge back to U.S. Dollars. The Fund will seek to create a balanced portfolio thus reducing risk while at the same time targeting a minimum of 5% net yield. AUM not disclosed.